Private sector lender Yes Bank (File image)
Yes Bank, which holds a key stake in Dish TV, has written to the company seeking removal of its directors and managing director, the DTH service provider said in a regulatory filing on September 6.
The private lender had sent a special notice dated September 3, 2021 to Dish TV, demanding the removal of directors under Section 169 of the Companies Act, 2013.
The notice sought the removal of Dr Rashmi Aggarwal, Shankar Aggarwal, Ashok Mathai Kurien and Bhagwan Das Narang as directors, along with Jawahar Lal Goel as managing director of the company.
The bank further said that consequent to Goel's removal as the MD, he shall "also cease to be the chairperson of the company".
Yes Bank, which currently holds 25.63 percent stake in Dish TV, has asked the company to take up the resolution for the removal of Directors and MD at the 33rd annual general meeting scheduled on September 27, 2021.
"The Board is not acting in line with good corporate governance standards and is not a fair representation of the incumbent significant shareholders of the Company being various banks and financial institutions holding about 45% shareholding in the Company," it stated in the notice.
The bank has also opposed the fund raising by Dish TV, of Rs 1,000 crore via rights issue.
"The present board of directors of the Company ("Board") has approved a rights issue process, pending objections raised with the Board by the Bank time and again, solely to dilute the shareholding of the Bank and to prejudice the interests of inter alia the Bank which is the single largest shareholder of the Company as of date," Yes Bank said.
Dish TV, in its regulatory filing, said it is examining the demand raised by Yes Bank seeking the removal of directors.
"The Company is further examining the above said Special Notices for such approvals as may be required including the steps to be taken to get the candidature of proposed new Directors cleared from necessary Authority i.e. Ministry of Information & Broadcasting, as prior approval from the Authority is a mandatory requirement," it said.